Polar Capital has expanded its fund range with a long/short global absolute return fund for its Global Convertibles team, following investor demand.
The Irish-domiciled UCITS fund, which launched on 31 December 2018, invests in convertible securities as well as corporate debt and equities.
Some 30-80 positions are held in equity hedged convertibles, asymmetric profiles, put trades, income/defensive instruments and covered convertible call writing.
The fund is managed by David Keetley in London and Steve McCormick in the firm's Connecticut office. They will be supported by David Sugarman, Jake Collins and Uttkarsh Lal.
Keetley joined Polar Capital in 2010 and is also manager of the $734m Polar Capital Global Convertibles fund, which has returned 4.9% over one year to 28 December 2018, according to FE.
The new fund will target a 5%-8% return with limited downside and volatility of around 6%.
Manager Keetley said the current market environment was the "ideal market condition" for a fund of this type.
Polar Capital said the launch was driven by investor demand from its clients. It already runs a £493m long/short UK Absolute Equity fund run by Guy Rushton but this was soft-closed in February 2018.
Iain Evans, global head of distribution at Polar Capital, said: "Before making the final decision to launch the fund, we conducted a round of pre-marketing, all of which reaffirmed our view that investors are actively looking for liquid, alternative strategies that can navigate and benefit from a more volatile environment, there is strong interest in absolute return strategies at the moment.
"Our global convertibles team is one of the most experienced convertible investment teams in the world with a long track record of outperformance in both absolute return and long-biased strategies."